DAIMLER-VOLVO FUEL-CELL JV TRANSACTION COMPLETES

Photography by: courtesy Daimler + Volvo


THE TRANSACTION for the formerly announced joint venture between Volvo Group and Daimler Truck AG to cooperate on fuel-cell technology for their respective commercial vehicle use is now complete, both companies have announced recently.

DAIMLER-VOLVO FUEL-CELL JV TRANSACTION COMPLETES
As both companies explain, the Volvo Group and Daimler Truck AG own equal interests in the JV, but continue to be competitors in all other areas such as vehicle technology and fuel-cell integration in trucks.

The upshot is the Volvo Group has acquired 50 per cent of the partnership interests in the existing Daimler Truck Fuel Cell GmbH & Co. KG for approximately EUR 0.6 billion on a cash and debt-free basis.

The ambition is to make the new joint venture (JV) a leading global manufacturer of fuel-cells, and thus help the world take a major step towards climate-neutral and sustainable transportation by 2050, they explain.

In terms of nomenclature, Daimler Truck AG and the Volvo Group have agreed to rename the company cellcentric GmbH & Co. KG.

According to the companies this JV will, "…develop, produce and commercialise fuel-cell systems for use in heavy-duty trucks as the primary focus, as well as other applications."

"A key goal of Daimler Truck AG and the Volvo Group is to start with customer tests of trucks with fuel-cells in about three years and to commence series production during the second half of this decade," they state.

The Volvo Group and Daimler Truck AG own equal interests in the JV, but continue to be competitors in all other areas such as vehicle technology and fuel-cell integration in trucks.

In November, 2020, the Volvo Group and Daimler Truck AG signed a binding agreement for the joint venture. Prior to that in April a preliminary non-binding agreement was signed by both parties.

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